TradingKey – Tesla (TSLA) and SpaceX (SPCX) merger speculation continues to gain momentum. Notably, on “The Brainstorm,” a podcast under Cathie Wood’s Ark Invest, several guests noted that if Tesla and SpaceX move forward with a merger in the future, Tesla’s China business could become a complex regulatory variable. SpaceX involves U.S. national security and satellite projects, while Tesla’s Shanghai Gigafactory is a key manufacturing and export hub, meaning certain technology and business dealings may face stricter scrutiny.

However, Ark Invest analysts believe the China business is not an insurmountable obstacle and could be managed by establishing relatively independent asset and operational boundaries. While the Shanghai factory…